CFPB closes 86% of supervisory actions as mortgage rules face review

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1. Home contract signings hit record October low

Contract signings fell 17% year over year in October, reaching their lowest level for the month on record, according to a Realtor.com report. The decline was the steepest since March 2023 and marked the fourth consecutive month of falling activity.

• Purchase mortgage applications also fell more than 18% from a year earlier, while 30-year mortgage rates averaged 7.33% during the month.

• Active listings rose 7.4% year over year to nearly 1.18 million homes, while the median asking price fell 2.2% to $415,000. New listings dropped 7.5%, their sharpest annual decline in more than three years.

• Contract cancellations remained relatively stable at 7.8%, compared with 7.5% a year earlier.

2. ResiCentral adds pricing flexibility with new Non-QM program

ResiCentral has launched NQM Advantage, giving brokers more options for self-employed borrowers, asset-qualified buyers and real estate investors. The program offers multiple pricing tiers, including Prime and Plus, with up to 90% loan-to-value (LTV), debt-to-income (DTI) ratios as high as 55% and more flexible guidelines for borrowers with past credit events.

Advantage Prime allows borrowers at least 36 months removed from bankruptcy, foreclosure or short sale to qualify under the program's guidelines. Those with a 740 credit score can qualify for up to 90% LTV. Eligible one-person service businesses can also use a 15% expense factor when qualifying with business bank statements, allowing 85% of deposits to count as income.

For asset-qualified buyers, the program offers up to 85% LTV on primary residences. Its DSCR Advantage option allows debt-service coverage ratios as low as 0.75 or offers a no-ratio option. First-time investors are also eligible.

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3. More Nuggets

🎯 Zillow says Preferred will handle all buyer connections. (StockAnalysis)

🤖 LenDB.ai builds database of 224,000 loan officers to connect borrowers with lenders. (LenDB.ai)

🔻 Home prices fell for a third straight week. (Redfin)

🚀 Home equity lending could overtake Non-QM in 2027. (NMP)

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4. Mortgage originations rise 12.8% as Fannie and Freddie purchase lending falls

Mortgage originations increased 12.8% year over year to approximately 1.5 million loans in the second quarter, according to a TransUnion report. Purchase originations rose 7.1% to about 1.16 million loans, but lending tied to Fannie Mae and Freddie Mac declined even as other major loan categories posted gains.

Refinancing accounted for a larger share of the growth, with originations up about 40% year over year. Rate-and-term refinances jumped nearly 60% to approximately 125,000 loans, while cash-out refinances rose 30% to 194,000. Refinancing's share of total originations increased to 21.5%, up from 17.4% a year earlier. HELOC originations also climbed 20.3%.

On the credit side, FHA loans accounted for 47.2% of mortgages at least 60 days past due, their highest share in more than 20 years. Delinquency performance among Fannie Mae, Freddie Mac and jumbo loans remained stable.

5. CFPB closes 86% of supervisory actions as mortgage rules face review

The CFPB closed 86% of its supervisory actions and ended 66 of its 80 open examinations as it scales back federal oversight. The bureau also cut scheduled examinations by about 50% and closed approximately 40% of pending investigations, according to its report covering July 2025 through June 2026.

Despite the pullback, mortgage origination and servicing remain supervisory priorities. The CFPB is reviewing ability-to-repay and qualified mortgage requirements under Regulation Z, along with mortgage servicing rules under Regulation X. It is also shifting fair lending enforcement toward cases involving intentional discrimination and identifiable victims.

The bureau received about 8.27 million consumer complaints during the reporting period and forwarded 7.5 million to companies for review. Companies responded to 99.6% of those complaints.

☀️ You’re all caught up. See you on Monday!

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